Hi everyone, I know there exists online calculators for this but I’m trying to also get some real world perspective from others in my situation. Given the comp breakdown below, what should my budget for a house be in California?
1. 420 - 450k liquid annual cash comp between wife and I.
2. 530k cash for down payment.
3. 850k-1.3m in Uber RSUs (depending on valuation) that will all vest this year. Post tax, assume half that. While this won’t be liquid till IPO, I am ok with using it as some leverage to pay more.
We currently leave in South Bay and would prefer to be around there with a relatively short commute to PA. Thanks.
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comments
I can tell you with 100% certainty that anyone who can easily afford to buy a house in the bay area for cash will choose to live somewhere else. Why the F do you want to become a slave of the system?
700K for down payment (reserve 100K for closing costs, unexpected first year home ownership expenses, emergency fund)
$3500 a month for a mortgage payment at 4 percent or so for $700k Loan. 1500 for taxes and insurance.
So a 1.4M dollar house. Only bid on properties listing for under 1.2M.
At your income levels you could go higher, especially if you sell espp as soon as the shares vest, but consider what will happen if:
- you get divorced
- one of you loses you your job
- one of you gets sick.
With your high down payment, worst case you can quickly sell the house to avoid foreclosure. If that is a risk you can handle, go for it.